Which document outlines the terms and conditions of a mortgage loan?

The mortgage contract is the document that outlines the specific terms and conditions of a mortgage loan. This legally binding agreement details the obligations of both the borrower and the lender, including the loan amount, interest rate, repayment schedule, and any other conditions that apply to the mortgage. This contract ensures that both parties are clear on what is expected and what will happen in case of default, termination, or other significant events.

In contrast, the purchase agreement primarily outlines the terms of the sale of the property itself, rather than the specific loan details. The deed of trust serves as a security instrument, providing the lender with rights to the property if the borrower fails to meet the loan terms, but it does not lay out the terms of the loan. The loan estimate is a document that provides an estimate of the loan terms and costs associated with the mortgage, giving borrowers some preliminary information but not the binding terms of the loan.